Which of the bonds will decline most in price

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Problem 1: Interest rates have increased by 50 basis points (0.5%). Which of the following bonds will decline most in price? All of the bonds have AA ratings.

A. A bond that matures in 10 days
B. A bond that matures in 5 years
C. A bond that matures in 10 years.
D. All of the bonds will decline in price by approximately the same amount.

Reference no: EM132955343

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